CBN explains why it revoked licences of 46 microfinance banks
By Aboki Forex —
The Central Bank of Nigeria has given reasons for revoking the operating licences of 46 microfinance banks. The apex bank said the affected institutions no longer meet regulatory requirements.
In a statement on Wednesday, July 1, 2026, the CBN listed under-capitalisation, inability to meet liabilities, prolonged inactivity, and operating without approval as key reasons for the action. The licences were revoked following approval by CBN Governor Olayemi Cardoso under the Banks and Other Financial Institutions Act of 2020.
The CBN said the move is aimed at protecting depositors and strengthening financial stability. It added that only sound financial institutions should operate in the country.
Hakama Sidi-Ali, Acting Director of Corporate Communications, signed the statement. The CBN said it remains committed to a safe and resilient financial system and will continue to take necessary regulatory actions to maintain public confidence.
Microfinance banks play a key role in Nigeria's economy. They provide credit and financial services to low-income earners, small businesses, and underserved communities. The latest revocations highlight ongoing challenges in the sector, including poor capitalisation and weak corporate governance.